Thousands of households are on high alert as their benefit payments could be stopped during the festive season. The government is shifting all legacy claimants to Universal Credit, a process called managed migration that kicked off in May 2022 after a successful pilot in July 2019.
Eligible families are getting letters with instructions to move from tax credits to Universal Credit. They have three months from when they get the letter to switch or they’ll lose their current benefits.
If they don’t, their benefits could be cut off. Last year, some households got an extra 30 days over Christmas, for deadlines between December 11, 2023, and January 5, 2024. But this year, the DWP says there’s no extension. So if you got your letter in late September or early October, your deadline could fall over Christmas.
The DWP has said: “We support millions of people every year to get the help they are entitled to. Anyone moving to Universal Credit can get expert advice and support through our dedicated helpline and Help to Claim Service.”
If your deadline is during the holidays, it might be smart to sort it out early, especially if you’re going to be busy, to avoid having your benefits stopped. The Department for Work and Pensions (DWP) has revealed that the final batch of migration notices for five key benefits will be sent out by December 2024. These include working tax credits, child tax credits, income-based jobseeker’s allowance, income support, and housing benefit (for those under the State Pension age).
These five benefits will permanently end in April 2025. Therefore, if you receive a managed migration notice as part of the final batch in December, you must apply for Universal Credit by March to ensure your payments continue without interruption.
The remaining households, currently claiming income-related employment and support allowance (ESA), should receive their migration notice by the end of 2025. This marks the sixth and final legacy benefit to be discontinued, with all ESA payments stopping permanently in April 2026.
Between July 2022 and September 30, 2024, the Department for Work and Pensions (DWP) issued nearly 1.4 million migration notices. However, DWP’s most recent data reveals that 318,834 individuals lost their benefits after failing to respond to migration notices received between July 2022 and June 2024.
Hence, it’s crucial to respond to your migration notice within the three-month deadline. Since then, 883,944 individuals have successfully claimed Universal Credit, with another 166,594 still in transition.
Experts have previously warned that managed migration could pose a risk to vulnerable individuals who may lose money. In 2022, high-ranking officials from charities such as Mind, The Trussell Trust, Turn2Us and the Money and Mental Health Policy Institute cautioned that approximately 700,000 people with mental health problems, learning disabilities, and dementia might find it difficult to engage with the process.
Over 20 organisations have called on the government to stop managed migration to address system flaws that could cause those at risk to slip through the net.